Revenue during the quarter dropped 5.75 percent to $65.28 million from $69.26 million in the previous year period. Gross margin for the quarter contracted 78 basis points over the previous year period to 96.51 percent. Total expenses were 79.67 percent of quarterly revenues, up from 72.55 percent for the same period last year. That has resulted in a contraction of 712 basis points in operating margin to 20.33 percent.

Operating income for the quarter was $13.27 million, compared with $19.01 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $17.84 million compared with $23.88 million in the prior year period. At the same time, adjusted EBITDA margin contracted 715 basis points in the quarter to 27.33 percent from 34.48 percent in the last year period.

Commenting on the Companys earnings results, Walter F. Ulloa, chairman and chief executive officer, said, "During the third quarter, we faced challenging comparisons to last year’s third quarter. We continued to grow our core television advertising revenue (excluding retransmission consent revenue and political advertising revenue), but these increases were offset by decreases primarily attributable to the loss of non-advertising revenue from a telecommunications operator. Additionally, we continued to grow our digital segment revenue and build our digital footprint through Pulpo Media, which provides us with an integrated platform to connect advertisers and marketers with Latino audiences. Looking ahead, we remain well positioned to build on our success in further attracting Latino audiences, expanding our advertiser base and monetizing our reach to the benefit of our shareholders."

The company has spent $7.21 million cash to meet investing activities during the nine month period as against cash outgo of $11.55 million in the last year period.

The company has spent $9.30 million cash to carry out financing activities during the nine month period as against cash outgo of $8.59 million in the last year period.

Cash and cash equivalents stood at $70.32 million as on Sep. 30, 2016, up 21.22 percent or $12.31 million from $58.01 million on Sep. 30, 2015.

Working capital increases marginally
Entravision Communications Corporation has recorded an increase in the working capital over the last year. It stood at $107.05 million as at Sep. 30, 2016, up 4.73 percent or $4.83 million from $102.22 million on Sep. 30, 2015. Current ratio was at 4.33 as on Sep. 30, 2016, up from 4.12 on Sep. 30, 2015.

Days sales outstanding went up to 84 days for the quarter compared with 80 days for the same period last year.